Dubai is one of the world’s most attractive cities to live, work and do business in. Among the benefits it offers are the lack of taxes imposed on companies and individuals, the infrastructure which allows the establishment of any type of trading activity and the possibility of establishing companies in its more than 30 free zones.
With respect to Dubai’s free zones, foreign investors have many benefits if they decide to do business in any of them. Below, our Dubai company formation agents explain what the advantages of starting a business in a free zone are.
1.The great number of Dubai free zones
The first and most important benefit of starting a business in a Dubai free zone is the great number of free zones surrounding the emirate. Dubai is now home to more than 30 free zones, however a few others under construction. It is also worth mentioning the fact the conditions for setting up companies in any of them are pretty much the same.
2.The tax benefits offered by Dubai free zones
Companies operating in Dubai mainland have multiple tax advantages, however, these advantages are also present in its free zones. Among these, we mention:
- the lack of any taxes imposed on the corporate income of locally registered companies;
- one of the lowest value added taxes in the world at a rate of 5%;
- the free repatriation of profits is available in all of Dubai’s free zones;
- access to a wide network of double taxation agreements concluded by the UAE.
Dubai free zone companies also benefit from exemptions on imports and exports. We can assist with VAT registration services in Dubai.
3. The company registration process in a Dubai free zone is easier
It is easier and quicker to register a company in a Dubai free zone than to set up a business on the mainland. This is because the company incorporation procedure of a business in a Dubai free zone is completed in one step.
4. Dubai Free zones have office spaces, warehouses, and factories
Among the facilities offered by Dubai’s free zones are the office spaces, warehouses and factories which operate within the same areas where the companies are. This way, the time and money spent on such facilities are reduced to a minimum.
Foreign investors willing to open companies in Dubai free zones are welcome to contact our local company incorporation advisors for assistance.